USD/JPY: Dollar is approaching the level of 150.00
In the Asian trading session the currency pair USD/JPY is moving without any single dynamics, intending to test the strong resistance threshold at 150.00.
The obvious difference in the ongoing monetary policy between the Central Bank of Japan and the US Federal Reserve System is reflected in a strong gap between the national currencies of the two countries in the market. Recall that the divergence of interest rates comes to 3.00-3.25% in the United States, while in Japan it is -0.1%, which is reflected in the difference in Treasury yields, and investors are expected to opt for U.S. bonds, based on estimates of comparable credit risk levels, from which the U.S. dollar only gains ground. Meanwhile, the U.S. Treasury Department intends to raise the interest rate by 0.75% once again at its next meeting in November, which only adds to the already strong pressure on the Japanese yen, a record high since 1990, reaching 148.75. Japan's Ministry of Finance reserves the right to continue officials' policy of currency interventions in order to reduce volatility without prior announcements in the future. At the moment, the Japanese regulator is still keeping a wait-and-see attitude amid weak inflation, as officials are concerned about the yen's unilateral slide, which they have already launched currency intervention mechanisms in September to prevent. It failed to achieve the expected result at that time, but now the fiscal government is able to significantly increase the volume of sales.
- Resistance levels: 150.00, 151.00, 152.00, 153.00.
- Support levels: 149.00, 148.00, 147.00, 146.00.
NZD/USD: bears got the upper hand
The New Zealand currency is trading in a moderate decline, starting the development of the weak corrective momentum received earlier. Slight support to the U.S. dollar was provided by the publication of the "Beige Book" by the U.S. Federal Reserve.
The regulator recorded a slight increase in economic indicators for August-September, which somehow has a difference in the pace and activity depending on the county or industry. In addition, there was a slight drop in demand due to the loan cost increases imposed by the financial authorities the day before. Manufacturing capacity has held steady, but some counties have shown moderate increases due to the stable logistics of related parts. The sharp rise in apartment prices in conjunction with higher mortgages has worsened the situation in the residential real estate market. Thus, the data on approved applications for construction work showed an increase of 1.4% in September or 1,564 million compared to the previous 1,542 million in numerical terms, with the preliminary estimate of a decrease to 1,530 million. However, the level of new housing built decreased by 8.1% or 1,439 million from the previous 1,566 million, The positive segment of the report was the labor market data which showed a moderate increase in employment and average pay in the vast majority of the counties.
- Resistance levels: 0.5720, 0.5800, 0.5850 and 0.5900.
- Support levels: 0.5621, 0.5563, 0.5511, 0.5467.
Silver Signals
The price of silver is trading with moderate strengthening, recovering the lost positions of the day before. The precious metal is around 18.50 with the prospect of growth, waiting for new stimulus.
Meanwhile, the trading floors are showing an upward trend in the asset contracts globally, but there are correction fluctuations at the moment, having completed the gains of the last five weeks in a row. As noted in the CFTC (Commodity Futures Trading Commission) report, net speculative positions sagged to 7.4 thousand versus 8.7 thousand in the previous week. However, the bulls kept the advantage in swap dealers' positions, which stood at 42,983k, more than the bears' 32,097k that closed 1,327k on the week, while buyers closed 0,051k, leaving the advantage in short positions on the asset.
- Resistance levels: 18.68, 19.00, 19.20, 19.50.
- Support levels: 18.29, 18.00, 17.52, 17.00.
If you are interested in Silver analytics, we recommend you to visit the analytics page, where you can find the latest analytics on Forex from top traders from all over the world. These analytics will be useful both for beginners and professional traders. The Forex signals service makes it much easier for beginners to make their first steps in trading on the financial markets. The latest XAG/USD forecasts and signals contain support and resistance levels, as well as stop-loss levels.
Oil Signals
Benchmark Brent crude oil is holding above the 90.00 mark.
The U.S. government is increasing efforts to influence the market, bringing strategic oil reserves to the world platforms in stages after the OPEC+ cartel decided to reduce the crude production capacity by 2.0 million barrels per day. Earlier, the U.S. President confirmed the information that the reserves have already reduced half of the volume, which remained about 400.0 million barrels of "black gold", moreover, the head of the White House announced a plan to release additional 15.0 million barrels, assuring that such a decision did not bear risks and was not harmful to the national interest, and that the reserves would be replenished as soon as the price of the asset approached the 70.00. In addition, Joe Biden pledged to increase the U.S. oil production capacity to 1.0 million barrels per day by the end of the year.
- Resistance levels: 93.80 and 101.00.
- Support levels: 89.50, 82.50.